Sabic, Shell to expand Saudi petrochemical venture

Petrochemical giant Saudi Basic Industries Corp., or Sabic, has agreed with Shell to expand their partnership through their Saudi Arabia Petrochemical Co., or Sadaf, joint venture.

Sabic said the two companies will jointly conduct studies for a styrene monomer propylene oxide, or SMPO, project and a polyols project before making a final decision.

"Sabic and Shell have also agreed to build on their strong long-term relationship to explore international petrochemical opportunities beyond Sadaf and Saudi Arabia," the mainly state-owned company said in a statement posted on the Saudi bourse website on Monday.

Sadaf is located in Saudi Arabia's Jubail Industrial city, according to the statement.